Loading prices...

Register/Sign in
ScrapMonster
Sell Your Junk CarGet an instant quote for your car on ScrapMonster.com
Steel News December 16, 2019 02:30:19 PM

British Steel Takeover Bid Not in Danger of Collapse, Confirms Jingye

Paul Ploumis
ScrapMonster Author
However, industry experts noted that any further delay in sale process could end up in making the business less attractive to other potential buyers.

British Steel Takeover Bid Not in Danger of Collapse, Confirms Jingye

SEATTLE (Scrap Monster): The Chinese industrial giant, the Jingye Group, declared that the British Steel bid is still on. It denied reports that the takeover deal is in danger of collapse. However, industry experts noted that any further delay in sale process could end up in making the business less attractive to other potential buyers.

Following the breakup of the deal with the Turkish Military Pension Fund, Jingye had entered into an agreement to buy the troubled assets of British Steel in early November this year. Although the sale has been agreed in principle between both the parties, the deal has not completed yet. The Chinese group had announced its plan to make significant investment as part of its commitment to boost output from Scunthorpe.

The finalization of the deal could save approximately 4,000 jobs in the region. Also, it could relieve the government of the costs of keeping the business alive. Incidentally, the government spends around £1 million in costs. The costs till date have exceeded £200 million so far.

ALSO READ: British Steel Puts French Hayange Plant Up For Sale

Although Jingye confirmed that the transaction will go ahead as planned, industry experts raised concerns that the deal could stall. The extension of final approval is likely to cause Jingye walk away from the deal. If so, the Official Receiver would be left with limited options. Although Liberty House has expressed interest in the assets, the conversion of the steelworks into EAF, as proposed by it, could lead to job losses.

×

Quick Search

Advanced Search